Signs Conakry Port Development Agreement

RNS Number : 6808B

Agriterra Ltd

23 February 2011

 



Agriterra Ltd / Ticker: AGTA / Index: AIM / Sector: Agriculture

23 February 2011

Agriterra Ltd ('Agriterra' or 'the Company')

Signs Conakry Port Development Agreement

Agriterra Ltd, the AIM listed company focussed on the agricultural sector in central and southern Africa, is pleased to announce that its wholly owned subsidiary, Agriterra Guinée SA ('AGSA') has signed a Concession Agreement with Port Autonome de Conakry (the Autonomous Port of Conakry, 'PAC') for the construction and operation of a 30 hectare industrial and commercial terminal in the East Zone of the Port of Conakry in Guinea ('the Port').  The 20 year Concession Agreement ('the Concession Agreement'), which may be renewed by agreement between the parties after its initial term, is part of the Company's strategy of expanding its operational activities within the agricultural and logistics business in Africa.

Under the terms of the Concession Agreement, AGSA has been granted a concession on 30 hectares in the East Zone of the port, for the construction and operation of a commercial and industrial terminal.  This new terminal will include:

·    a 300 metre long dock; and

·    a 30 hectare platform, to be built by back-fill, to be used as a base for the operations of the terminal and associated activities. 

It is anticipated that the terminal, when complete, will contain grain storage silos, a processing unit, a preparation unit, a logistics depot, a fuel depot, freight hangars and food storage silos.

The Board and management of Agriterra have an in-depth understanding of logistics and agriculture in Africa which will be utilised throughout the development process.  Leading German international port consulting engineers and architects Inros Lackner AG has been engaged to assist with the project and is presently in the process of conducting an implementation and development study.  It is envisaged that a construction partner and appropriate project financing will be secured to complete the project. 

Conakry is an important West African hub and a gateway for trade into countries including Mali, Niger and Burkina Faso.  Agricultural produce is transported through the port as well as bulk commodities including iron ore and bauxite.  The expansion of the port is intended to satisfy the increased demand for transportation capacity needed due to the expanding regional economy.

Agriterra Director Andrew Groves said, "This is a fantastic complementary opportunity for Agriterra to expand its activities and utilise its African focussed agricultural, logistics and project management experience to capitalise on the soft and hard commodity resource boom in West Africa.  There remain huge global concerns regarding food security which are prompting significant investment in West African agriculture, particularly in palm oil, cocoa, rice, maize and livestock.  This, in tandem with the dramatic increase in the development of mineral resources, particularly iron ore and bauxite, means there is a crucial need to expand the export capacity of the Port of Conakry, which is recognised as a gateway and staging post to interior West African countries including Mali, Burkina Faso and Niger.  Guinea has recently concluded a peaceful democratic election and, as a result, is building its profile as an investment destination.  The expansion of the Port will aid the development of Guinea as a regional hub and we plan to work with international partners to ensure that the development is delivered to the benefit of all interested parties.

"We will continue to develop our Mozambican grain processing and cattle ranching businesses which are growing rapidly and gaining market share in the region.  This opportunity in Guinea provides us with access into the complementary agricultural logistics sector, which will provide us with additional traction as we build Agriterra as a vertically integrated agricultural and associated logistics group across sub-Saharan Africa."

The Company will release an announcement regarding progress of this project in due course once there is further information.

** ENDS **

For further information please visit www.agriterra-ltd.com or contact:

Andrew Groves	Agriterra Ltd	Tel: [phone]
Jonathan Wright	Seymour Pierce Ltd	Tel: [phone]
David Foreman	Seymour Pierce Ltd	Tel: [phone]
Robin Henshall	Matrix Corporate Capital LLP	Tel: [phone]
Nick Stone	Matrix Corporate Capital LLP	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Susie Geliher	St Brides Media & Finance Ltd	Tel: [phone]

 

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